When there is more than one state, or more than one jurisdiction (state court, federal court) with a significant relationship to the parties and circumstances involved in a lawsuit or dispute, the question may arise as to which state or jurisdiction’s laws will govern the lawsuit or dispute. The body of law that determines what law governs a dispute is called conflict of laws and consists of legal principles courts use to determine which state or jurisdiction’s law applies—unless the parties to a dispute have agreed (usually in a contract) on what law will apply.

In Arkansas, as in other states, when a lawsuit or dispute involves multiple states or jurisdictions, the determination of which state or jurisdiction's laws will apply is governed by the principles of 'conflict of laws.' Conflict of laws is a set of rules used to evaluate which legal system and laws are most closely related to the matter at hand. Arkansas courts will consider various factors, such as the location where a contract was signed, where a tort occurred, the residency of the parties involved, and where a piece of property is located. The courts aim to apply the law of the jurisdiction that has the most significant relationship to the dispute. However, if the parties have entered into a contract that includes a choice of law provision, the courts will generally honor that agreement, assuming it was made fairly and does not contravene public policy. In cases where federal law may apply, the court will determine whether the federal issue is substantial enough to warrant federal jurisdiction, or if state law should predominate. This complex area of law often requires careful analysis and the expertise of an attorney to navigate the intricacies of the applicable statutes and case law.